In today’s increasingly digitized world, expectations from businesses are at an all-time high. Customers want same-day shipping, return policies that prioritize their needs, and a high quality of personalized service. Failure to deliver on any of these points, and they will take their business to a rival company that provides them with the facilities they want. Supply chains around the world are transitioning to faster and more innovative models by the day, and every company is judged by rapidly rising standards.
In this fast changing and intensely competitive market, the challenge businesses face is that of becoming (and remaining) agile. Customer-demand levels tend to fluctuate, while supply issues also occur. Businesses need to handle both factors without negatively impacting overall service. Supply chains around the world are transitioning to ensure they can fulfil your business’s needs.
This is where third-party logistics come in to help support businesses with the smooth movement of goods and services. Given a 3PL and 4PL’s industry-specific expertise, these vendors are able to offer seamless supply chain services regardless of market conditions, while giving access to facilities, infrastructure and know-how that may otherwise remain unavailable for businesses.
If your company also decides to embrace the rising trend of outsourced supply chain management, there are a number of factors to consider before partnering with a 3PL or a 4PL provider. As each business is unique, a qualified vendor should be ready to tailor their supply chain solutions to your exact business needs and objectives.
1. Does the Provider Have the Capabilities You Need to Meet Your Objectives?
2. Is Their Network Large Enough to Efficiently and Effectively Satisfy Your Logistics Requirements?
3. What Kind of Customer Support Does The Provider Offer?
4. Does the Provider Have Experience Working With Your Industry?
5. Is the Provider Financially Sound?
6. Does the Provider Have a Reputation For Flexibility and Agility?
7. Have the Provider’s Services Been Certified?
8. Is the Provider Technologically Advanced Enough to Offer Total Transparency?
9. What is the Provider’s Ideal Client?
9 Questions You Need to Ask About Your Supply Chain and Logistics Services Provider
A New Supply Chain Trend: Outsourcing
In order to maintain customer satisfaction, outsourcing has advanced as a solution for optimizing the efficiency of many businesses’ supply chains.
Saving time and money
Companies are coming to the realization that inhouse management of the supply chain can be both inefficient and costly, given the fact that business managers are responsible for multiple outcomes and their generalist approach may not be best suited for this aspect of operations.
In contrast, an external supply chain and logistics management vendor offers specialized services that can quickly adapt to industry developments.
They are able to efficiently see a company’s products through development to consumer phases, which can include such distribution activities as:
• Domestic transportation
• Freight forwarding